Non-Immigrant Petitions: Timely filed extensions (the 240 day rule) -- Theory versus Practice
While many non-immigrant extensions can benefit from the 240 day rule, as a practical matter it is often better to pay for premium processing and get the case approved on time.
The timely filed extension rule (240 day rule) - theory versus reality.
-- US immigration law allows someone in H-1B or O-1 or various other nonimmigrant (temporary) work visa statuses to keep working in the US for up to 240 days beyond the expiration of the current status, provided a "timely filed extension" is pending.
-- So what this means is that let's say your H-1B expires on August 1, 2022, and your employer files an extension in July 2022, the "timely filed extension" rule says that even though your status and current I-94 expire on August 1, you can keep working beyond August 1 based on the "timely filed extension" which is still pending.
-- Long ago the timely filed extension rule was appealing but for the past several years (including now) - it doesn't work great in reality. It is more of a theoretical concept.
-- First, in nearly all states now (including some very liberal blue states that allow undocumented immigrants to drive; I'm talking to you Illinois) -- driver's licenses are tied to visa status. So even though the timely filed extension rule will give you permission to work, you might find it difficult to get your driver's license renewed. Perhaps in the era of WFH (WORK-FROM-HOME), it is not a big deal if your DL expires. But if your DL expires, you may end up with a mess dealing with your auto insurance premiums.
-- Second, if you need to travel abroad because of an emergency, you won't have your approval notice and so you won't be able to get a new travel visa. Of course you can convert the pending H-1B extension from regular to premium processing but the conversion process can be cumbersome and take a couple weeks or more and if there is a RFE issued, then that will be more hassle and time.
-- And if you are an in-house manager of visa/immigration issues, you know that if you have an employee with a timely filed extension, he is probably going to contact you every week to ask if there is any news on his case and at some point YOUR TIME is worth more than the $2,500.00 to pay for premium processing.